PSB Phase 2 presentation
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PSB Phase 2 presentation PSB Phase 2 presentation Presentation Transcript

  • Ofcom's second public service broadcasting review Phase 2: Preparing for the digital future 25 September 2008
  • Audiences should have a choice of providers
    • Audiences value the BBC
    • But they also want PSB alternatives to complement the BBC
    • Stakeholder support
    • Enhances reach and impact
    • Valuable as an end in itself in news and current affairs
    • Valuable to audiences, who are willing to pay
  • The current model of ITV1 provision is broken Current costs soon exceed benefits 2009 2010 2011 ITV Wales Costs > benefits During 2009 ITV Plc Costs > benefits Before 2012 stv Costs > benefits 2009 - 2010
    • Post 2012:
    • UTV & GMTV: Benefits>costs
    • Five: Small net benefits
    1 2 3 4 Licence handback becomes a rational option for ITV Plc
  • Channel 4 should have a significant role, but it needs an economic model and funding to support this Note: Forecasts Channel 4’s financial shortfall by 2012. LEK's numbers based on EBITDA. Ofcom based on EBIT, due to differences in methodology £32 m £60 m £100 m £119 m
  • Estimated funding gap - after 2012 considerable uncertainty £330- 420 m £185 m £145 - 235m Total funding of £330 - £420m per annum may be needed by 2012
  • Institutions and competition should play important roles
    • Reach
    • Values
    • Independence
    • Flexibility
    • Transparency
    • Efficiency
    Benefits Institutions Competition
  • Long term models for PSB in the future need refining 2. BBC only 1. Evolution 3. BBC/Channel 4 4. Broad competitive funding
  • All funding options identified in Phase 1 remain credible
    • Regulatory assets
    • Direct public funding
    • Licence fee
    • BBC assets
    • Levy schemes
  • In the short term commercial PSBs' obligations must set them on a path consistent with the long-term models
    • Ofcom’s proposed PSB priorities for ITV1 up to 2014:
      • Original British programming, so quotas remain
      • UK and international news, so requirements unchanged
      • Peak-time current affairs unchanged but reduced outside peak
      • Peak-time news for the devolved nations unchanged but non-news minimum reduced
      • Current affairs in the nations unchanged
      • Regional news in England that prioritises peak-time over daytime and balances regional with local
    • As part of this re-prioritisation:
    • - ITV1’s Out of London production quota reduced to 35%, in line with pre-2004 figure
    • Ofcom rejected the case for any change in:
      • ITV1’s quota of independent productions
  • In the short term commercial PSBs' obligations must set them on a path consistent with the long-term models
    • five’s role in PSB up to 2014:
    • -Original production quota fixed at 50%
    • -News and current affairs unchanged
    • -New commitment by five to enhanced delivery of children’s programmes
  • Our core principles for the future
    • BBC remains the cornerstone of PSC
    • Audiences should have a choice of providers in most areas of PSC
    • TV remains essential, but PSC should be delivered across platforms
    • Content for the devolved nations remains essential – particularly news
    • Institutional & competitive funding could play important future complementary roles
    • Channel 4 needs a new economic model to deliver its future public service contribution
    • ITV1 and Five retain important PSC roles up to 2014 with re-prioritised focus
    • After 2014, the case for obligations on ITV1 & Five is more evenly balanced
    • Most of the Phase 1 funding sources are credible - a mix may be needed in future